Are Crude Oil and Diesel Prices Still Climbing?
crude oil prices rising
Most of the world is still dealing with the effects of the widespread 2019 Pandemic, such as shipping concerns and high gas prices. While prices continue climbing, many businesses are feeling the weight of delayed shipments and higher prices. As refineries experience more limitations, prices seem to climb higher, leaving consumers wondering if this will continue.
Are Crude Oil And Diesel Prices Still Climbing?
In some parts of the U.S., some Americans are finding relief from high gas prices, while others are still dealing with high prices. Before the pandemic, prices were lower, and it was easier to gain oil and other fuel sources needed because refineries produced more. Shipping was sustainable, both internationally and domestically. However, since the pandemic, slower refinery production has led to a decrease in crude oil and diesel production and shipping. The good news is that most refineries are back to regular pre-pandemic production, which may help lower costs and speed up shipping.
So, if refineries are back to regular production, why are prices still climbing? According to experts, more crude and diesel are making their way out of the country to areas such as Latin America and parts of Europe. Without domestic oil sources, oil and diesel prices will continue climbing. The rising demand for oil exports to other countries means fewer domestic resources. Without a domestic supply, costs will keep climbing.
Will Prices Continue to Rise?
Experts report that within the last few months, diesel exports averaged approximately 1.45 million barrels of a day. This is significantly more than domestic exports from a few years ago. The U.S. continues to export more fuel to South America than ever before. Higher demands for fuel mean higher costs as other countries bid on desired crude oil and diesel and it doesn’t seem like average prices will lower any time soon.
Although gas prices seem lower in many parts of the country, the supply and demand for oil will continue to fluctuate and control the world-wide cost of fuel. Experts predict the refineries will continue to fluctuate because of inevitable limits of refinery intake. Air freight, domestic, and other shipping means will slow down and experience unplanned delays. Some experts predict rising costs from higher exports as the demand for oil also rises.
What Does This Mean For Your Business?
As a business owner, it’s important to plan for potential shipping delays amid rising fuel costs. While the demand for crude oil and diesel continues climbing, many businesses will keep experiencing shipping delays. So, what does this mean for your business? Whether you use intermodal rail or air freight shipping, it’s essential to plan for potential delays. Partnering with other shipping companies can help you navigate time critical shipping logistics and save you time. Many companies have experience working through time delays and shipping issues so you can receive your products and help more customers.
Trifecta Transport Can Help With Shipping Logistics
Does dealing with quoting, shipping, and scheduling overwhelm your business operations? Our team understands the pressures of shipping issues and other business requirements. That is why we created a complete solution package that handles your business needs so you can take care of your customers.
When you need help navigating business logistics, the team at Trifecta Transport can help. Our team can help choose the right shipping needs for your business and help stay within your budget. You don’t have to deal with shipping issues on your own. We can help.
Contact Us Today
Need help with your shipping needs? Contact the team at Trifecta Transport today and let us know how we can help you and your business. Together, we can navigate shipping logistics and make the best decisions for your business needs.
